Company analysis
What is pe ratio?
Whether a share price looks expensive or cheap compared to the company’s profit.
Explained in more detail
PE stands for price to earnings. A higher number means investors are paying more for each rupee of profit. It is only useful when compared against similar companies and against the same company’s own history.
An example
For instanceA PE of 20 means investors pay ₹20 for every ₹1 of yearly profit per share.
Why this matters to you
You will meet this word in broker apps, company results and market news. Knowing what it means is not the goal on its own. The goal is being able to judge whether a number is good or bad for the investment you are actually holding.
On AlphaVik, any time pe ratio appears in a view or a lesson, you can hover or tap the word and this explanation comes with it. You never have to leave the page to look something up.